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HYDROGEN & MARINE SHIPPING

What is Hydrogen?


Hydrogen (H₂) is the most abundant element in the universe – present in water (H₂O), plants, animals, and hydrocarbons as building blocks for fuels like gasoline, diesel and natural gas. As a substance that can store energy for later use, hydrogen is a highly versatile element and can be produced using renewable electricity, making it a potential candidate to replace fossil fuels to achieve sustainable energy systems.

This site shares information from academic, industry, government and non-government sources about hydrogen and its potential as a sustainable fuel source for use and transport by ships. The site’s purpose is to encourage informed conversations about the benefits, risks, and challenges of transitioning to this fuel type.

Emerging Energy Opportunity

As the world’s energy demand includes a growing share of sustainable energy sources, hydrogen is emerging as a potential solution to store and transport energy. With this shift, hydrogen and hydrogen-based fuels, such as ammonia, methanol, and methane, will need to be produced and transported to meet energy demand just like oil is today.

Each year, oil tankers move more than 2 billion tonnes of crude oil around the world to meet the world’s energy needs.[1] This cargo is valued at over $120 billion and contains over 80,000 petajoules[2] of energy – more than 2.5 times the world’s current renewable electricity generation capacity.

In 2025, the maritime industry, through the International Maritime Organization (IMO), committed to a legally binding framework to achieve net-zero greenhouse gas emissions (GHGs) by or around 2050.[3] Hydrogen-based fuels are emerging as potential candidates to replace traditional ship fuels.

Ships currently consume about 340 million tonnes of fuel[4] each year or 14.2 petajoules of energy (based on 42 gigajoules per tonne of heavy fuel oil), mainly as heavy fuel oil or marine diesel. This market is worth over $165 billion with heavy fuel oil priced at $500 per tonne.

Ship illustration

Life cycle emissions are the total greenhouse gas emissions (GHGs) associated with the production, transport, and use of any fuel – including hydrogen and hydrogen-based fuels – considering all stages from extraction of raw materials to its final use. All types of GHGs, translated into carbon dioxide equivalent values, are incorporated into the life cycle analysis of a fuel.

The emissions footprint of hydrogen-based fuels can be compared to the fossil fuels they replace by evaluating the life cycle emissions for each fuel.

Emissions can be created at each of the following stages: 

Production Emissions

The amount of emissions created while making the fuel. Green hydrogen produced from electrolysis using renewable electricity has near-zero emissions, while blue hydrogen produced from natural gas with carbon capture and sequestration (CCS) can have reduced emissions.[20]


Fugitive Emissions

The unintentional release of GHGs to the atmosphere at any point during production, storage, transport, and use of a fuel. Hydrogen and methane are potent climate warming gases and any leakage can significantly contribute to GHG impacts. Leak detection and repair technologies such as drones and tracers can reduce fugitive emissions along the supply chain.


Exhaust Emissions

The release of emissions when fuels are combusted in an engine:

  • Carbon dioxide emissions – combustion of hydrogen fuels that contain carbon will result in carbon dioxide emissions. If the carbon in the fuel was taken from the atmosphere through direct air capture then the CO2 released during combustion is considered carbon neutral.
  • Nitrous oxide (N₂O) emissions – most engines produce small amounts of nitrous oxide as a result of nitrogen in the fuel combining with atmospheric oxygen (not to be confused with the smog producing NOx emissions). Nitrous oxide is a very powerful greenhouse gas, with a global warming potential approximately 300 times greater than carbon dioxide.[21]


Hydrogen’s unique properties require specialized infrastructure and oversight. Hydrogen and hydrogen-based fuels are already widely used for refining, fertilizer production, and chemicals. As hydrogen transitions from industrial feedstock to low-carbon energy carrier, new standards and regulations will be required to ensure safety and scalability. 

Current standards and regulations for storing and transporting hydrogen and related fuels are still evolving and fragmented across regions: 

Hydrogen 

  • Not currently regulated for widespread maritime fuel use due to its low energy density and high liquefaction cost. 
  • Only small volumes of liquid hydrogen can currently be transported by ship. 

Ammonia 

  • Has an established global maritime transport chain, mainly for use in fertilizers. Currently around 11 to 14 million tonnes of ammonia are transported by sea annually[22] in purpose-built refrigerated gas carriers, often alongside liquefied petroleum gas (LPG). 
  • New safety standards are in development as ammonia begins to be used as a marine fuel. 

Methanol 

  • Around 13 million tonnes of methanol are transported by sea annually, making it an established component of global chemical trade. [23]
  • Methanol use is governed under existing rules for flammable liquids. Fueling infrastructure, operational experience, and safety regulations already exist, though these may evolve if methanol becomes a more widely used marine fuel.

Methane

  • Methane is transported globally in large volumes as liquefied natural gas (LNG), with infrastructure and developed regulatory frameworks. 
  • LNG-fueled vessels are already in use, particularly in sectors seeking to reduce sulphur and nitrogen oxide emissions. 
  • Methane slip (unburned methane emissions) remains a key environmental and regulatory concern as its use as a marine fuel expands. 

All four fuels – hydrogen, ammonia, methanol, and methane (LNG) – are expected to be subject to evolving IMO regulations in response to global GHG reduction targets.


In 2020, the Government of Canada issued a Hydrogen Strategy with a plan for using low-carbon hydrogen as a tool to achieve net-zero emissions by 2050. Since inception of the strategy, nearly 80 potential low-carbon hydrogen production projects have been announced in Canada.[31] Many of these projects are still under consideration or in development. The hydrogen production landscape in Canada continues to evolve, and it remains to be seen how many of these projects will be completed. In 2025, the Canadian government announced intentions to become the world’s leading energy superpower in both clean and conventional energy. 

Hydrogen Production Potential

Canada has significant potential hydrogen production capacity. A map of proposed and existing facilities highlights key green hydrogen projects across the country:

Domestic & Global Market

While Canada has the potential to produce green hydrogen, it still lacks the infrastructure to produce significant quantities and demand to consume the energy it produces. 

In 2024, two-thirds (67%) of Canadians polled by the Angus Reid Institute would prioritize the use of potential green hydrogen to decarbonize domestic industries, including shipping. Similar-sized groups say either Canada should primarily export the hydrogen it produces (16%) or not invest in hydrogen at all (17%).[32]

In March 2024, Canada and Germany signed a memorandum of understanding committing $600 million to establish a green hydrogen supply chain, following a Canada-Germany Hydrogen Alliance entered into in 2022.[33] Germany aims to import up to 50-70% of its hydrogen demand by 2030.[34] Also in 2024, the Canadian Hydrogen Association signed memoranda of understanding with Hydrogen Europe and Hydrogen Sweden to support a collective effort to advance international hydrogen collaboration and accelerate hydrogen deployment.[35, 36] 

In the Pacific region, Hydrogen Canada Corporation and Korea Southern Power signed a memorandum of understanding in 2024 to develop green ammonia production and export facilities to supply ammonia to South Korea.


Bécancour Air Liquide (Bécancour, QC) – The Bécancour Air Liquide project, operational since 2021, houses the world’s largest Proton Exchange Membrane (PEM) electrolyser, producing up to 8.2 tonnes of green hydrogen per day using renewable hydroelectric power. Learn more.


Belledune Green Hydrogen Project (Belledune, NB) – The Port of Belledune is collaborating with Cross River Infrastructure Partners, Pabineau First Nation, and Eel River Bar First Nation to develop a large-scale green hydrogen and ammonia production facility. The project plans to utilize 500 megawatts of renewable electricity to produce green hydrogen and ammonia for both domestic use and export. The project is currently in development and may be in operation by 2027. Learn more.


Project Courant (Baie-Comeau, QC) – Project Courant is a proposed green ammonia production facility led by Hy2gen Canada. The project will use hydroelectric power to produce green hydrogen, which will then be converted into ammonia for export and industrial use. The project is still under development with no launch date set. Learn more.


HTEC Hydrogen Liquefaction Facility (North Vancouver, BC) – Announced in 2025, the HTEC Hydrogen Liquefaction Facility in North Vancouver will process 15 tonnes per day of by-product hydrogen for distribution across British Columbia and Alberta. The project is part of the H2 Gateway program, which includes hydrogen refueling stations and fuel cell electric trucks. It is currently in the early stages of development with an operation date yet to be set. Learn more.


                               

Port Tupper Energy Hub (Hawkesbury, NS) –Two projects are underway in the Point Tupper Industrial Park near Port Hawkesbury, Nova Scotia. Everwind is developing a green hydrogen and ammonia production facility. The facility will use newly built wind farms and water from Landrie Lake. Bear Head Energy is planning a large-scale green hydrogen and ammonia production, storage, and loading facility. Both projects are under development with a final investment decision expected in 2025. Learn more about Everwind and Bear Head Energy.


Projet Mauricie (Shawinigan, Quebec) – Projet Mauricie, led by TESCanada H2 Inc., aims to produce up to 70,000 metric tons of green hydrogen annually to support industrial decarbonization and heavy transport in Quebec. The project is currently in the development phase. Learn more.


Varennes Carbon Recycling (Varennes, QC) – The Varennes Carbon Recycling project, currently under construction, will feature a 90-megawatt electrolyzer system powered by hydroelectricity to produce green hydrogen on-site. This hydrogen will be used to convert waste and biomass into low-carbon fuels, supporting Quebec’s circular economy and emissions reduction goals. Originally slated for 2025, operations are now expected to begin in 2026. Learn more.

 

Windsor Salt Cavern Storage (Atura Power, Plains All American) – The Windsor Salt Cavern Storage project, developed by Atura Power and Plains All American, aims to create a hydrogen storage facility in Ontario using salt caverns. Announced in 2022, this project aims for large-scale storage of hydrogen produced in times of excess supply, ensuring a stable and reliable energy source when demand is high. The project is currently in the planning and regulatory phase.

 

Atlantic Hydrogen Alliance – The Atlantic Hydrogen Alliance was created to support the development of a vibrant green hydrogen value chain to enable the transition to a prosperous low-carbon economy in Atlantic Canada. Learn more


Green Shipping Corridor Initiative, Port of Halifax, NS – The Halifax Port Authority was awarded funding up to $22.5 million from Transport Canada through the Green Shipping Corridor Program to prepare the port for the fuels and energy sources of the future. The funding builds on existing work at the Port of Halifax including the Memorandum of Understanding signed in 2022 with the Port of Hamburg to decarbonize the shipping corridor between the two ports. Learn more


Hydrogen-powered equipment prototypes, Port of Montreal, QC – Terminal operator QSL received hydrogen-powered equipment prototypes in 2022 to accelerate decarbonization of the shipping industry. Learn more


Hydrogen-powered trucks, Port of Prince Rupert, BC – The Port of Prince Rupert announced in June 2024 that it will add four new zero- and low-emission heavy-duty trucks to their operations. Two of the trucks will be hydrogen-powered, one battery-electric, and one hydrogen-diesel co-combustion. Learn more


Transatlantic Hydrogen Value Chain, Port of Belledune, NS – The Belledune Port Authority signed a memorandum of understanding with the Port of Antwerp-Bruges to work together to set up a supply chain for lower carbon fuels and green manufacturing goods, with the priority focused on hydrogen and its derivates. Learn more


Clear Seas is a Canadian not-for-profit organization that provides independent fact-based information to enable governments, industry, and the public to make informed decisions on marine shipping issues. We work to build awareness and trust so that all people can feel a part of the marine sector. Our vision is a sustainable marine shipping sector that is safe, vibrant, and inclusive, both now and for future generations.

Clear Seas was launched in 2015 after extensive discussions among government, industry, environmental organizations, Indigenous Peoples and coastal communities revealed a need for impartial information about the Canadian marine shipping industry.

As an independent research centre, Clear Seas operates at arm’s length from our funders. Our research agenda is defined internally in response to current issues, reviewed by our research advisory committee, and approved by our board of directors.

Our board of directors is composed of mariners, scientists, community leaders, engineers and industry executives with decades of experience investigating human, environmental and economic issues related to our oceans, coastlines and waterways.

Our reports and findings are available to the public at clearseas.org.